Scams To Avoid When Buying A New Car

Buying a new vehicle is already hard enough without a car salesman putting pressure on you while you are browsing. We all know that almost every car dealer can be negotiated down on the sale price of a car. The thing is that to watch out for the scams so that you can maximize your hard earned cash. In this article I am going to share a few sales tactics that you may want to be on the lookout for the next time you purchase a new car.

1. Some dealerships may try to scam you by charging you for having the VIN# etched on the windows, saying that it is a requirement by the loan compnay. It is not. Lenders will never ask you to add features you don't need. Their main concern is your ability to repay the loan.

2. This is a scam for those with poor credit. The are dealership that may quote the "subject to loan approval" phrase found in many loan proposals as a way to get as much as an extra $1000 and $50 per month out of you. A way to avoid this is to get you funding from a bank or other lender.

3. One of the most common scams is the credit score scam. The car dealership will try to give you a higher finance rate by informing you that your credit score is lower than it actually is. Dealerships will try this scam regardless of you credit score. The best way to deal with this greediness is to bring a copy of your credit report with you when you go looking to buy a new car. That way there is no dispute.

4. A dealership may insist that you purchase a warranty, telling you that it is required for you to qualify for a car loan. This is NOT true.

5. This is the Dealer prep scam. A dealer will slap an additional $500 charge on the vehicle for work that is not required, because cars are ready to to be driven of the lot when they are received. Try to find a dealership that doesn't charge this ridiculous fee.

6. Another fake fee is the 'dealer mark-up'. This has no purpose other than to increase profits. You can usually see this fee on an orange sticker attached to the manufacturer's suggested retail price.

As common as these scams are, there are also quite a few reputable dealerships out there. Dealerships that will give you a good service and sell you a car at a fair price. You just have to look carefully for them.

Article Source: http://www.search4allinfo.com

Roberto Beiro has put together many other great car articles on his website. He is also the author of many original articles like tips on buying a used car.

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